Logistics businesses aim for sustainable supply chains

Global logistics currently faces fluctuations from tariffs, geopolitical conflicts in some areas, and demands for sustainable development.

Logistics services, transporting goods by rail, have great potential but have not been fully exploited. In the photo: Goods concentration area at Trang Bom Railway Station in Dong Nai province.

As for Vietnam, economic growth and import-export activities are contributing to the development of the logistics service industry. However, the logistics sector still faces many barriers, requiring transformation to develop a sustainable supply chain.

Trade helps promote logistics growth

According to Deputy Director of the Foreign Market Development Department under the Ministry of Industry and Trade Nguyen Thao Hien, global trade is clearly recovering. In 2024, the total value of global trade reached nearly 33 trillion USD, an increase of 3.3% compared to 2023.

In Vietnam alone, in the first 6 months of 2025, the total import-export turnover reached approximately 432 billion USD, an increase of over 16% compared to the same period. Exports reached nearly 220 billion USD, imports over 212 billion USD, with a trade surplus of over 7 billion USD.

Trade helps promote logistics growth, and the scale of goods transportation increases with the scale of production, import, and export. In the first 6 months of 2025, Vietnam's goods transportation volume reached over 1.4 billion tons, an increase of nearly 14.3% compared to the same period in 2024. In particular, strong import and export activities in the first 6 months boosted the volume of goods through seaports by double digits, reaching over 573 million tons, an increase of 15% compared to the same period in 2024.

Experts predict that the logistics market in Vietnam will continue to grow in the second half of 2025. This is due to the general outlook from the scale of trade and the potential of new large-scale industrial parks after local mergers; domestic and cross-border e-commerce continues to expand. The government is strongly promoting public investment progress, and investment in logistics infrastructure with the participation of the private sector is also encouraged, thereby improving the efficiency of logistics services in Vietnam. In addition, the shift of global supply chains and foreign direct investment (FDI) into Vietnam is expected to increase, promoting Vietnam's trade with the international community in the coming years.

At seaports, despite global challenges, revenue and output have also achieved positive results. For example, Dong Nai Port Joint Stock Company recorded strong growth in both revenue and profit in the second quarter. Accordingly, in the second quarter, Dong Nai Port's revenue reached 392 billion VND, an increase of 22% compared to the same period in 2024. This is because the port exploited additional production-serving goods such as coiled steel, iron, steel, billets, etc., leading to an increase in transportation and cargo handling activities through the port.

Challenges to transform for sustainable development

According to the Ministry of Industry and Trade, in the context of continued complex global trade and investment developments from April 2025 until now, businesses in the logistics industry have continuously had to change, predict, adapt, and ultimately strive to enhance their resilience and competitiveness to survive in a rapidly changing environment.

Dr. Dinh Thi Bao Linh, Deputy Director of the Industrial and Trade Information Center under the Ministry of Industry and Trade, stated that fluctuations in trade policies, geopolitics, and environmental standards are creating an urgent need for procedural reform, infrastructure upgrading, and proactive integration to avoid being excluded from the global supply chain.

Similarly, Mr. Juergen Weber, Chairman of the Transport and Logistics Subcommittee of the European Chamber of Commerce in Vietnam (EuroCham), commented, Vietnam has great potential to become a new logistics hub in the region if it continues to improve infrastructure, simplify procedures, and develop green logistics. Currently, the greening process of logistics in Vietnam faces many challenges, especially as businesses want to access the EU market more deeply. Limitations include inconsistent logistics infrastructure in Vietnam and some inconsistent policies and regulations. Overcoming these barriers, this is a golden time for Vietnam to build a modern, efficient, and sustainable logistics system, while empowering the next generation with a full set of tools to develop a green economy.

According to Mr. Dinh Xuan Khanh, Director of Tan Cang Saigon Logistics Center, the current challenge is that high logistics costs have become Vietnam's main barrier, accounting for 14-15% of GDP compared to the world average of 9-10%. Dependence on international carriers leads to increased freight costs when demand for goods rises, putting pressure on import-export businesses. Therefore, Vietnam needs to integrate management, infrastructure, and technology into a synchronized strategy.

In the field of railway transport, Mr. Nguyen Duy Toan, Director of Ratraco Transport Solutions Co., Ltd., shared that Vietnam's railways are mainly single-track, 1m gauge, limiting load capacity and speed. Railway transport accounts for less than 1% of transport turnover due to lack of infrastructure investment. Limited infrastructure not only affects domestic transport but also hinders the export of goods to major markets. Upgrading railways is an urgent requirement; this is clearly demonstrated as the Vietnam - China intermodal route has seen its transport volume double in the first half of this year compared to last year. When the Hai Phong - Lao Cai railway is upgraded to 1.435m gauge, and stations are expanded and locomotives increased, it will meet the demand for international intermodal transport, especially with China...

By Van Gia/Translated by V.N-H.T